Credit and savings cooperatives have been advised to look into their financial capacity, most especially as they are involved in the business of supporting microentrepreneurs or those members with seasonal livelihood income. Consequently, coop members involved with finance and credit management must have at least a sophisticated knowhow with policy on loans and how to handle them. This material, derived from NATCCO’s professionalization program on credit management, offers a number of loan policy manuals based on the capacity-based lending methodology, These manuals procedurally explain how a loans officer should deal with a number of issues and processes starting with a member’s loan application, evaluation, documentation up to the loan collection.

Since NATCCO recognizes the difficulty of managing loan accounts, several handouts from the training’s lecture has been included. These handpicked lectures tackle the nature of capacity-based lending, the rationale behind the loan processes, credit policies to follow, credit management framework, together with some pointers on credit analysis and tools for determining credit worthiness.